Mola Mola - MM Banking
Loan Origination and Monitoring Solution
An MM Banking solution that digitalizes the loan approval process in financial institutions
About the client
Mola Mola is a financial industry consulting firm focusing on business process excellence. They closely collaborate with software solution companies to transfer knowledge and best practices into software solutions. Mola Mola’s customized solutions are the foundation of digital transformation for several Croatian financial institutions.
Mola Mola consultants discovered that financial institutions’ staff is overworked, and loan approval procedures are slowing down because of numerous business and regulatory requirements. They decided to provide an MM Banking software solution to digitize the process. Instead of forcing clients to search for and carry around documentation, the MM Banking software would rely on data from internal systems, subscription services, and public registers. The structured data would then be used to check all applicable exemptions and enforce all business and regulatory rules and requirements, resulting in a faster loan approval process.
Manual loan approval processes use non-standardized methods and a variety of non-specialized tools, such as email exchange and manual data entry from scanned documents into excel for calculations. The procedure is time-consuming and error prone. The lack of transparency regarding the status of a client’s loan request throughout the process frequently causes client dissatisfaction and employee frustration.
Digitalizing and automating the process requires a system that relies on customizable business workflows to cover all happy paths and corner cases. The system must handle many rules and formulas to meet legal and economic requirements. The MM Banking software solution must be customizable enough to allow the financial institution to adapt to changing market and regulatory conditions.
Our team of developers developed a solution that connects with internal systems and external financial services and imports data relevant to credit scoring. The solution also includes a task-based decision-making module with customizable workflows to improve coordination among the various individuals, teams, and departments involved in loan approvals. The system automates the entire process until a contract for the approved loan is generated and shown to the client. The system logs both automated and manual decisions for risk management and regulatory purposes.
For business logic, we used .NET Core, and for data storage and processing, we used MS SQL via Entity Framework. The system communicates with the Alfresco document management system (to store raw documents and scans) and with the Camunda process orchestration system (used to execute decision-making workflows and provide for their customization). Long-running background processes like data import use HangFire technology. Angular and DevExpress were used in the creation of the user interface. We have also built APIs based on the OpenAPI Specification (Swagger) to expose system functionality to other systems, such as mobile or web-based banking apps.
The solution allowed simple loans to be approved, and the average time it takes to approve a complex loan has been reduced from months to a few days. The solution is developed even further so that it should take no more than 12 minutes from the start of the process via web to the transfer of money to the account. The entire process was digitalized, resulting in much better coordination of personnel at counters with sales, credit, and other decision centers in the financial institution. Furthermore, the solution automated the retrieval of data from numerous services, the credit scoring formulas calculation, and the management of documents associated with the process.